Weekly landlord news digest: poor student living conditions, capital gains tax and the pros and cons of rent control

As a landlord it can be hard to find time to keep up to date with the ever changing property industry. With this in mind our property experts at Hamilton Fraser hand pick the key news that you should know about each week!

This week we take a look into student living conditions reported in a recent survey by the National Union of Students, consider whether you may be paying too much capital gains tax and investigate the pros and cons of rent control.

Students living in hazardous homes infested with rats

Thousands of students rent shabby homes riddled with damp and infested with rats, according to a survey by the National Union of Students.

The NUS asked more than 2,000 students about their living conditions and received an appalling list of complaints.

Another 16 per cent of students have issues with electrical safety, while a further 9 per cent complained that gas safety was not up to scratch.

Fewer than half were given tenancy agreements or safety certificates, despite the legal obligation on letting agents and landlords to do so, while 37 per cent lacked paperwork to show their deposits were protected.

“Students are living in appalling circumstances in some of the worst housing stock in the country. They have been taken advantage of by bad landlords who rely on students not knowing their rights or what to expect when they rent their first home. Living in damp and dangerous properties is not a rite of passage for students coming to college or university.

We are calling for better enforcement of the law to protect tenants’ rights, because it’s no use educating tenants about their rights if landlords aren’t forced to improve standards.”

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Are you paying too much CGT tax?

The tax man picked up a record £6.8 billion in capital gains tax (CGT) in January 2019 – but many couples could be paying more than they need to.

Richard Needham, personal finance specialist at advice firm NFU Mutual, said: “Capital Gains Tax receipts are on course to hit record levels this year with £6.8 billion already in the Treasury’s coffers and billions more expected in February and March.

“Many people paying CGT could have significantly reduced or eliminated any tax bill by sharing the burden with their husband, wife or civil partner.

“One big advantage that married couples and civil partners have over everyone else is it’s much easier to swap assets and drastically reduce CGT bills. Giving assets such as shares or property to anyone other than your spouse or civil partner could trigger a tax bill.

“Savvy couples make sure both individual allowances are used up and some if not all the tax bill is paid by the partner paying the lowest rate of income tax.

“Anyone who isn’t married can still potentially reduce a CGT bill by selling over the course of two tax years and making use of two lots of annual exemptions. Financial advice is as important for those selling an asset as it is for people buying.”

Landlord charges £600 a year to keep a pet

Build to let landlord Tipi will charge tenants up to £600 a year to keep pets in their rented homes.

Renters at the company’s Wembley Park development in London will pay £600 extra for a dog, £360 more for a cat and £600 for two cats.

The Tipi web site states the landlord is pet friendly ‘for a small monthly fee added to your rent’.

Do you rent to tenants with pets? Share your stories and opinions with us at @TotalLandlord

“For too long, those living in rented accommodation have been unable to keep pets. We wanted to change that. We wanted to give our residents the freedom to enjoy the companionship that pet ownership can bring – so we made Landsby our first pet-friendly building and are delighted to have already welcomed plenty of four-legged residents to their new homes.”

– Rajesh Shah, Managing director

Letting agent faces jail for running a brothel

Letting agency director Sunil Mehta, 42, could face jail for running a brothel from a flat let from his own agency SureLet (Hemel Hempstead) Ltd.

Mehta admitted running the brothel and two fraud charges at Luton Crown Court.

He appeared with Graziela McNamee, 40, who also admitted the brothel offence.